When working with CAPM , k i k RF i (k M k RF ), which of the following factors (variables) c an be determined with the most precision (most reliable estimated value) a The required rate of return of the market k M b The Equity Risk Premium of the risky stock i which is being priced c The Beta i of the risky stock i which is being priced d The market risk premium RP M e The dividend growth rate of stock i which happens to be a good, stable, predictable dividend paying stock f The most appropriate Risk free Rate, k RF

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Question: When working with CAPM , k i = k RF + i (k M - k RF ), which of the following factors (variables) c

When working with CAPM, k_i = k_RF + _i(k_M - k_RF), which of the following factors (variables) can be determined with the most precision? (most reliable estimated value)

	a.	The required rate of return of the market k_M
	b.	The Equity Risk Premium of the risky stock_i which is being priced.
	c.	The Beta _i of the risky stock_i which is being priced.
	d.	The market risk premium RP_M
	e.	The dividend growth rate of stock_i which happens to be a good, stable, predictable dividend-paying stock.
	f.	The most appropriate Risk-free Rate, k_RF

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